Bausch + Lomb Corporation (BLCO)
NYSE:BLCO
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Bausch + Lomb Corporation
(NYSE:BLCO)
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Rating:60Neutral
Price Target:
$16.00
▼(-3.26% Downside)
Action:ReiteratedDate:02/19/26
The score is most constrained by weak financial performance—multi-year net losses and negative free cash flow—despite solid revenue growth and a supportive balance sheet in the latest period. Offsetting this, the earnings call was strong with clear 2026 guidance for improved margins and EBITDA growth, and the technical setup is constructive with the stock trending above key moving averages. Valuation is held back by negative earnings and no stated dividend support.
Positive Factors
Refinanced term loans; extended maturities
Extending term‑loan maturities to 2031 and lowering lending margins improves liquidity timing and reduces near‑term refinancing risk. This structural capital‑structure move increases flexibility to fund R&D, launches and working capital while moderating interest‑rate pressure on free cash flow over the medium term.
Negative Factors
Multi‑year net losses and negative free cash flow
Persistent accounting losses and negative free cash flow weaken long‑term capital flexibility. Even with revenue growth, repeated negative FCF (including -$66M in 2025) constrains reinvestment, debt paydown and shareholder returns, increasing reliance on external financing for strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Refinanced term loans; extended maturities
Extending term‑loan maturities to 2031 and lowering lending margins improves liquidity timing and reduces near‑term refinancing risk. This structural capital‑structure move increases flexibility to fund R&D, launches and working capital while moderating interest‑rate pressure on free cash flow over the medium term.
Read all positive factors
Bausch + Lomb Corporation (BLCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.84B
Dividend YieldN/A
Average Volume (3M)405.48K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth6.23%
EPS Growth17.53%
CountryUS
Employees13,500
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.32
Shares Outstanding354,318,200
10 Day Avg. Volume391,487
30 Day Avg. Volume405,477
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)0.94
Price to Sales (P/S)1.18
P/FCF Ratio-91.56
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue2.12
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda18.93
Forecast
1Y Price Target
$18.76Price Target Upside13.42% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)0.78
Revenue Forecast (FY)$5.43B
Bausch + Lomb Corporation Business Overview & Revenue Model
Company Description
Bausch + Lomb Corporation operates as an eye health company worldwide. It operates through three segments: Vision Care/Consumer Health Care, Ophthalmic Pharmaceuticals, and Surgical. The Vision Care/Consumer Health Care segment provides contact le...
How the Company Makes Money
BLCO primarily makes money by selling eye-health products across several major business lines. (1) Vision Care: revenue from the sale of contact lenses (including daily and reusable lenses) and related vision-correction products, typically sold th...
Bausch + Lomb Corporation Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting core strengths and areas of growth or decline within the company’s operations.
Shows how much revenue each business segment generates, highlighting core strengths and areas of growth or decline within the company’s operations.
Data provided by:
The Fly
The FlyBausch + Lomb Corporation Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The earnings call conveyed materially positive operational and financial momentum: a record Q4 and full-year, strong top-line growth in key franchises (notably Miebo and contact lenses), significant EBITDA expansion and clear 2026 guidance that targets continued revenue growth and margin improvement. Progress on the pipeline (clinical wins, launches, CE filings) and improved cash-flow discipline further support a constructive outlook. The principal risks noted were the residual effects of the enVista recall, tariff impacts, elevated interest expense and a large external share float; these are meaningful but do not negate the company’s clear execution narrative and raised outlook. On balance, highlights substantially outweigh the lowlights.Positive Updates
Record Quarter and Year
Q4 revenue of $1.405 billion (up 7% constant currency) and Q4 adjusted EBITDA of $330 million (up 27% YoY) produced the highest revenue and highest adjusted EBITDA in company history; Q4 adjusted EBITDA margin was 23.5% (a 330 bps YoY expansion). Full-year revenue was $5.101 billion (up 5% YoY; up 6% excluding the enVista recall) and full-year adjusted EBITDA was $891 million with a 17.5% margin.
Negative Updates
enVista Voluntary Recall Impact
The voluntary enVista recall negatively impacted Surgical revenue and full-year results (company excludes recall, showing higher growth rates: full-year revenue +6% excluding recall vs +5% reported). Some monofocal business still needs to be recovered due to contracted purchasing during the recall period; company noted remaining hangover in the monofocal segment.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarter and Year
Q4 revenue of $1.405 billion (up 7% constant currency) and Q4 adjusted EBITDA of $330 million (up 27% YoY) produced the highest revenue and highest adjusted EBITDA in company history; Q4 adjusted EBITDA margin was 23.5% (a 330 bps YoY expansion). Full-year revenue was $5.101 billion (up 5% YoY; up 6% excluding the enVista recall) and full-year adjusted EBITDA was $891 million with a 17.5% margin.
Read all positive updates
Company Guidance
For 2026 the company guided full‑year revenue of $5.375–$5.475 billion (constant‑currency growth of 5%–7%) with an estimated ~$30 million FX tailwind; adjusted EBITDA of $1.0–$1.05 billion (≈19% margin at the midpoint), which implies roughly 15% adjusted EBITDA growth year‑over‑year and nearly 3x operating leverage versus revenue; adjusted gross margin of ~62%; R&D spend of 7.5%–8% of revenue; interest expense of about $365 million; an adjusted tax rate of ~19%; CapEx of approximately $285 million; and continued seasonality (Q1 lowest, Q4 highest) that is expected to become more pronounced as the dry‑eye franchise grows.Bausch + Lomb Corporation Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
55
Neutral
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.10B | 4.79B | 4.15B | 3.77B | 3.77B |
| Gross Profit | 3.00B | 2.92B | 2.50B | 2.25B | 2.30B |
| EBITDA | 572.00M | 601.00M | 499.00M | 598.00M | 733.00M |
| Net Income | -360.00M | -317.00M | -260.00M | 6.00M | 182.00M |
Balance Sheet | |||||
| Total Assets | 14.02B | 13.47B | 13.44B | 11.14B | 10.82B |
| Cash, Cash Equivalents and Short-Term Investments | 383.00M | 305.00M | 334.00M | 380.00M | 174.00M |
| Total Debt | 5.37B | 4.94B | 4.68B | 2.55B | 140.00M |
| Total Liabilities | 7.50B | 6.92B | 6.52B | 4.04B | 1.42B |
| Stockholders Equity | 6.45B | 6.47B | 6.85B | 7.03B | 9.33B |
Cash Flow | |||||
| Free Cash Flow | -66.00M | -59.00M | -198.00M | 170.00M | 680.00M |
| Operating Cash Flow | 283.00M | 232.00M | -17.00M | 345.00M | 873.00M |
| Investing Cash Flow | -455.00M | -412.00M | -2.11B | -215.00M | -214.00M |
| Financing Cash Flow | 225.00M | 178.00M | 2.08B | 81.00M | -712.00M |
Bausch + Lomb Corporation Technical Analysis
Positive
16.54
Price Trends
16.89
Negative
16.78
Negative
15.65
Positive
Market Momentum
-0.23
Negative
51.03
Neutral
63.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLCO, the sentiment is Positive. The current price of 16.54 is above the 20-day moving average (MA) of 16.17, below the 50-day MA of 16.89, and above the 200-day MA of 15.65, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 63.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLCO.
Bausch + Lomb Corporation Risk Analysis
Bausch + Lomb Corporation disclosed 53 risk factors in its most recent earnings report. Bausch + Lomb Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bausch + Lomb Corporation Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $4.08B | 40.58 | 8.52% | ― | 11.49% | -2.89% | |
64 Neutral | $13.94B | 30.60 | 4.83% | ― | 5.06% | -4.47% | |
63 Neutral | $3.75B | 34.81 | 9.72% | 0.29% | 9.19% | 23.06% | |
60 Neutral | $5.84B | -16.79 | -5.61% | ― | 6.23% | 17.53% | |
60 Neutral | $6.75B | 188.46 | 2.37% | ― | 11.74% | ― | |
52 Neutral | $2.37B | -3.81 | -35.24% | 5.61% | -7.08% | -113.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
BLCO
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Bausch + Lomb Corporation Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Bausch + Lomb refinances term loans, extends maturities
Positive
Jan 2, 2026
On January 2, 2026, Bausch + Lomb Corporation closed a refinancing of its existing credit facilities by entering into a fourth amendment to its credit agreement, establishing a new $2.80 billion tranche of term B loans maturing on January 15, 2031...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.